Tag Archives: middle-east
UK government criticised for having a short term approach to new home building
The wave of new home building in the UK could harm the longer term housing market as sustainability, design, quality and planning risk being pushed aside in the rush to build new properties, it is claimed. A new report from the House of Lords Built Environment Select Committee Report outlines concerns that the short term approach to building new homes is being carried out at the expense of long term considerations, and criticises the removal of initiatives such as zero carbon homes. It points out that the planning, design, management and maintenance of the built environment has a long term impact upon people and communities and that policy towards the built environment in England should not be the sole preserve of any one Government department. ‘There is an urgent need to co-ordinate and reconcile policy across numerous different areas and priorities. Recently, however, one priority has become dominant in debates concerning built environment policy. Increasing the overall supply of housing, and the speed at which housing is delivered, is a central part of the Government’s policy agenda,’ the report says. ‘When seen in the context of the housing crisis facing many communities across England, this is understandable and, overall, we welcome the Government focus on increasing and speeding up the supply of housing,’ it explains. ‘Restrictions on financial freedoms and flexibilities, however, pose a threat to the ability of local authorities to build houses of their own. The private sector, throughout the post-war period, has very rarely achieved the delivery of 200,000 homes a year. We do not believe the Government can deliver the step change required for housing supply without taking measures to allow local authorities and housing associations each to play their full part in delivering new homes,’ it adds. The report also says that Government initiatives have so far failed to address a further part of the house building problem, which is the gap between planning permissions granted and new homes built. ‘We recommend measures intended to address this, and other, barriers to increasing the number of housing completions. More fundamentally, however, we are concerned that the overall emphasis on speed and quantity of housing supply appears to threaten place making itself, along with sustainable planning for the long-term and the delivery of high quality and design standards,’ the report says. ‘The Government is pursuing a deregulatory agenda as seen, for example, in the introduction of more flexible arrangements for office to residential conversions and the strong policy emphasis placed on the financial viability of new developments. These… Continue reading
Residential rents in England and Wales up 3.6% year on year
Rents in England and Wales increased by 3.6% year on year in January with the East Midlands and the East of England lead rental growth, up 5.9% and 5.8%. This means that rents re growing quicker in these two regions in London and landlords overall have seen total annual returns reach 12% or £21,988 in absolute terms since November 2014. The data from the buy to let index from Your Move and Reeds Rains also shows that the average rent is now £790 per month and the proportion of late rent fell in January to 8.2% compared to 9.3% in December 2015. In London rents rose by 5.7% on an annual basis, marginally slower than 6.3% recorded in December. At the other end of the spectrum rents are lower than a year ago in the South East and North East regions, both seeing a 1% annual fall. Meanwhile the slowest annual rent rises are in Wales, up just 0.6% since January 2015. Six out of 10 regions have witnessed monthly falls in rents, in line with the overall month on month trend across England and Wales. This is led by London, with rents in the capital 0.7% lower than in December. Taking into account both rental income and capital growth, the average landlord in England and Wales has seen total returns of 12% over the 12 months to January, up from 11.2% in the 12 months to December, a 14 month record since total returns stood at 12.3% in the year to November 2014. In absolute terms this means that the average landlord in England and Wales has seen a return of £21,988 over the last 12 months, before any deductions such as property maintenance and mortgage payments. Of this, the average capital gain contributed £13,594 while rental income made up £8,394 over the 12 months to January. Rental yields have so far proved resilient in the face of price rises, the report also shows. The gross yield on a typical rental property in England and Wales, before taking into account factors such as void periods, is steady at 4.9% in January, the same as in December 2015. On an annual basis, this is fractionally lower than the 5% gross yield seen a year ago in January 2015. ‘Buy to let returns are building and property prices are picking up as the housing shortage across the UK intensifies. Landlords’ balance sheets are looking healthier than at any point since 2014, and property investors are looking at an excellent rate of return from their portfolios,’ said Adrian Gill, director of estate agents Reeds Rains and Your Move. ‘With house prices rising rapidly into the New Year, this acceleration will be a welcome addition to the wealth of landlords on paper, while solid rental yields are underpinning total returns pushing well into the double digits,’ he added. He believes that the current fuss over the… Continue reading
UK buyers choose renovation properties to try to save money, research suggests
Some 35% of home owners in the UK who bought a property that needed renovation had to as it was the only way that could afford to buy a home, according to new research. Some 8% bought a home needing renovation but found that in reality they could not afford to do the work and 10% ended up living on a ‘building site’ for a year or more before starting the work. The research from price comparison site Confused.com also found that for those who persevere the hard work can be worth it 19% made a profit of between £25,000 and £50,000 from a successful renovation project. The sale prices of properties that need renovation are normally much lower than the prevailing market price in that particular locality. On average, home owners who have bought a renovation property have saved themselves £44,037. Home renovators are paying on average £152,792 for a property that needed some work done to it, compared to the average UK house price which is valued at £196, 829. Some 38% admitted to buying a property that needed some work as it saved them thousands of pounds compared to buying a home that needed no work. In fact, 40% of home owners admit they would buy a property that needed renovation if it saved them money. On average, home owners spent £33,089 on doing up their properties with 12% spending more than £50,000 renovating their home. Some 62% did work on the kitchen and 61% on the bathroom. However, renovating a property can often be more expensive than first anticipated with 45% of home owners saying they spent more than intended, with many spending £2,886 over their budget. Indeed, some 26% ended up going over their budget by more than £5,000 and 22% said that they would never buy a renovation project again. And the research also found that 41% who have carried out renovation work on their property have not let their insurer know. ‘As house prices seem to be continuing to rise, it would appear that more and more people are resorting to buying properties that need renovation. Deciding to renovate a property is a big decision and often more expensive than first anticipated,’ said Gareth Lane, head of home insurance at the firm. Continue reading
